Brazil’s high operating costs

Keeping prices low has been a challenge for most retailers because operating costs in Brazil are high. Apparel vendors in Brazil pay an estimated 35% in taxes on their products, compared with about 8% in the U.S., according to Alexis Frick, a São Paulo-based analyst for market researcher Euromonitor International. Retailers that ship their products in from abroad pay as much as a 35% in addition to those taxes in import taxes.

Take a look:

Price Check

Comparing prices in the U.S. versus Brazil for select items. These are website prices as of March 17.

Items

U.S. price

Brazil price

Mizuno New Prophecy 3

$210

$426

Mac lipstick

$16

$28

Unlocked iPhone 5S (16 GB)

$650

$1,190

When a friend from Brazil told me my Kitchenaid mixer (that retails for $250 on Amazon) sells in Brazil for US$1,000+, I asked that he take it when he went back, sell it, and we split the profit.

He already had bought one for himself, otherwise I would have sold him mine.

Related:
The Economist did a price comparison on Latin America iPhonomics.

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